The Effect of Digital Skills on The Workforce of The Indonesian MSME Sector

Abstract

Abstract. Digital transformation can be marked by the emergence of digital technology and the internet in various sectors of life. This makes all activities carried out conventionally now transition to digital. Technology is used to modernize the world of work. Therefore, all human resources must be able to align themselves in facing the development of an all-digital era. To adapt in this era, humans need to develop their capacity by honing their soft and hard skills. Digital skills are also one of the abilities that must be mastered by many workers, especially in the MSME sector in order to implement digitalization in their business. Then, having digital skills can certainly improve their productivity. However, many MSME workers in Indonesia are not yet fully skilled in using digital technology. Not to mention there are challenges that certainly create gaps in improving digital skills. Therefore, the purpose of this research will be to investigate the challenges and identify strategies related to the effect of digital skills
on the MSME sector workforce. The method used is a SWOT analysis to explain the strengths, weaknesses, opportunities, and threats related to the effect of digital skills on the Indonesian MSME sector workforce by taking into account existing external and internal factors. The results of this study are to analyze the challenges and describe strategies that can be applied to improve the digital skills of the Indonesian MSME sector workforce. From this research, it can also be concluded that digital skills are very important to be mastered by workers in the MSME sector.